Don't take Bank Guarantee from PG medical students: University tells Private Medical Colleges

Hyderabad: Much to the relief of PG medical candidates, who were allotted seats at Telangana-based private medical colleges; the issue of demanding upfront bank guarantee towards payment of fees for all the academic years; is headed for a resolution.

According to recent media accounts, Vice-Chancellor of Kaloji Narayana Rao University of Health Sciences (KNRUHS), Dr Karunakar Reddy, has asked the self-financing medical colleges not to collect bank guarantee from MBBS medicos intending to pursue PG medical courses.

Medical Dialogues had recently reported about the whole issue which caused a setback to the PG medical students, who had then come up and arms against this decision with their allotment letters in hand.

As per the regulations, the bank guarantee for 3 years -Rs 7 lakh which is a Fixed Deposit (FD) can be given to the medical college after the counselling process is over. However, it is not the case at present with the private medical colleges in the state.

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Medicos, who intend to look at other options in the Round 2 counselling session, had alleged that they are being forced to pay fees, submit bank guarantees for second and third years and also pay first year tuition fee of Rs 3.80 lakh for Convener (government) quota seats and Rs 7.90 lakh for management quota in the 1st round of counselling itself.

They had further alleged that these institutes are not allowing the 2nd round of counselling to be completed. They are also being insisted to pay a miscellaneous fee of Rs 40,000 and a refundable fee of Rs 90,000, in addition to the bank guarantee. Some have also complained that the medical colleges were demanding medical college campus hostel fee for 1-year in advance even if a student does not want to stay in the hostel.

Terming the demand of bank guarantee as “illegal”, the PG medical students approached the Telangana Junior Doctors’ Association (TJUDA) to help them resolve this problem alleging that private medical colleges were not coming clear on the rules. The medicos had also called the helpline of the KNRUHS seeking clarification on the bank guarantee issue.

It had been stated that this demand is in strict violation of the 2017 High Court order, which allows students to pay 50 per cent of the admission fee and execute a bond for the balance 50 per cent as an interim measure.

The bank guarantee is mandatory for students since 2003 according to court orders. However, there are clear-cut Court orders prohibiting private medical colleges from demanding bank guarantees. Dr PS Vijayender, Chairman TJUDA said, “Asking for the bank guarantee when the counselling session is in progress is illegal. To confirm the seat, first-year fees can be taken. But demanding the bank guarantee is not right.”

Later, on April 16, TJUDA submitted a representation to State Health Minister Etela Rajender citing a High Court order of 2017 where it stated no students must be prevented from attending college solely on the ground that he or she has not furnished bank guarantee.

In view of the representation, the Health Minister spoke to KNRUHS Vice-Chancellor, Dr B Karunakar Reddy and asked him to direct private medical colleges in the State to not to insist for bank guarantee from medical students, as per Telangana Today.

During the conversation, the Health Minister said that the university must ensure that meritorious doctors are not harassed by private medical colleges.

Now, complying with the order of the Health Minister, the university has asked the medical colleges to not insist PG medicos furnish bank guarantee.

“Based on the Health Minister’s directions, we have requested the managements' of all the private medical colleges not to insist on the bank guarantee,” Dr Reddy confirmed while talking to The Hindu.

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